Thailand’s economy expanded at its slowest pace in over a year amid geopolitical risks and weaker domestic demand.
Thailand’s real GDP growth decelerated to 1.9% year-on-year in the second quarter, down from 2.8% in the first quarter. The slowdown reflects rising geopolitical tensions in the Middle East and softer domestic consumption, according to recent data.
First-half growth averaged 2.3%, below the central bank’s projections. Analysts had expected a modest pickup, but external shocks and delayed fiscal stimulus dampened momentum. Comparable growth in Q2 2025 stood at 2.4%, highlighting the recent weakness.
Markets showed limited reaction, with the Thai baht steady against the USD and equities holding near session lows.